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Wall Street drops, Gazprom halts as investors digest jobs data

Traders at work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, August 22, 2022. REUTERS/Brendan McDermid

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  • US jobs rose more than expected in August
  • Wage growth slows, unemployment rises slightly
  • Index losses: Dow 0.59%, S&P 0.67%, Nasdaq 0.96%

Sept 2 (Reuters) – Wall Street’s main index fell in Friday afternoon trading.

The three main indicators opened significantly higher following jobs data that showed stronger-than-expected employment, but rising unemployment prompted aggressive rate hikes by the Federal Reserve. concerns have been alleviated.

“Investors are rethinking the August jobs report and perhaps leaning towards the fact that there is no clear end to rate hikes,” said Rick Meckler, partner at Cherry Lane Investments. will bring,” he said.

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Adding to the concerns, Russia has set Saturday’s deadline to resume gas flow through the Nord Stream 1 pipeline, one of its main supply routes to Europe, after it said it had discovered a fault during maintenance. abolished, deepening the difficulty of securing winter fuel in Europe.read more

Russia’s state oil company Gazprom said it could not safely resume deliveries until it repaired an oil leak found in a turbine of a critical pipeline. It didn’t give a new time frame.

said Joe Saluzzi, co-manager of Themis Trading in Chatham, New Jersey.

Analysts also said low trading volumes ahead of the holiday weekend had exaggerated market movements.

“Volume is very low because it is the Friday before the three-day weekend and liquidity tends to be empty,” Saruzzi added.

The market is closed on Monday for Labor Day.

The CBOE Volatility Index (.VIX), also known as the Wall Street Fear Index, rose to 25.5 points after hitting lows a week ago.

Nine of the S&P’s 11 major sectors fell. All sectors rose early after a Labor Department report showed US employers hired more workers than expected last month.

But with average hourly earnings up 0.3% from an estimated 0.4% and the unemployment rate rising to just 3.7% from its pre-pandemic low of 3.5%, the Fed’s early rate hike efforts are paying off. indicates that it has started . read more

Wage growth data is seen as key to the Fed’s deliberations on raising interest rates as it attempts to return inflation to its 2% target, which has been at a 40-year high.

The focus has now shifted to the August consumer price report due mid-month. This is the last major data available before the Fed’s Sept. 20-21 policy meeting.

The S&P 500 (.SPX) has fallen nearly 4.5% since Fed Chairman Jerome Powell’s hawkish rhetoric about rate hikes last week, fueling fears of aggressive monetary tightening. recently hit Wall Street. His views were later echoed by other policy makers.

All three major indicators are set for three consecutive weeks of losses.

At 1:39 pm ET, the Dow Jones Industrial Average (.DJI) fell 186.98 points (0.59%) to 31,469.44 and the S&P 500 (.SPX) fell 26.50 points (0.67%) to 3,940.35. . The Composite Index (.IXIC) was down 113.37 points (0.96%) to 11,671.75.

Energy stocks (.SPNY) rose 1.6% as oil prices rose nearly 2% ahead of the OPEC+ meeting to discuss potential production cuts.

On the New York Stock Exchange, gainers outnumber losers by a ratio of 1.08 to 1. Losers outnumbered gainers on the Nasdaq by a ratio of 1.40 to 1.

The S&P index hit three 52-week highs and five lows, while the Nasdaq posted 41 new highs and 127 new lows.

US exchanges traded 6.52 billion shares, averaging 10.31 billion shares across trading days over the last 20 days.

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Reported by Devik Jain and Sruthish Shankar from Bangalore. Edited by Sriraj Kalluvila and Maju Samuel

Our standards: Thomson Reuters Trust Principles.

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